China’s foreign currency reserves suffered their largest monthly fall on record in August.<br /><br /> It’s the result of heavy intervention by the central bank to support the yuan after last month’s surprise devaluation – but the drop was less than some commentators had feared.<br /><br /> Figures from the People’s Bank of China show that reserves dropped fell by $93.9 billion (84 billion euros) to $3.557 trillion (3.2 trillion euros), as capital outflows escalated due to fears over China’s economic slowdown and prospects of rising US interest rates.<br /><br /> One analyst said the drop in reserves was amplified as the dollar fell against other major currencies.
